Monday, May 12, 2008

Making Money With Subway

So as I stood in line at the local subway, I began to ponder the profitability of such a place. Today they had four workers working (that I could see). How long would you say it takes to make a foot-long sub? Let's start with 2 mins each. So at a maximum, they could make 30 foot-long subs an hour. Cost of a foot-long right now is $5, and the meal somewhere around $7. So an average, if we say each sub made generates $6 of revenue. So we've got $180 an hour MAX for a Subway.

Then you have to subtract the cost of materials, workers, building lease, franchise fee, etc. Sounds like a Subway store could generate at MAX less than $80 in revenue an hour. Now how many times have you gone into a subway when they were making 30 subs an hour? Lunch and maybe dinner times.

Anyway, I can't see how owning a Subway could make you very much money at all.